Medical & Prescription PlansA type of insurance coverage that pays for medical, surgical, and prescription expenses that are incurred by the insured. Health insurance can either reimburse the insured for expenses incurred from illness or injury or pay the care provider directly. Dental and Vision insurance can be added to these plans, or may be provided on a stand alone basis.

Medicare & Medicare Supplemental (Medigap)Medicare is our country’s health insurance program for people age 65 or older. Certain people younger than age 65 can qualify for Medicare, too, including those who have disabilities, permanent kidney failure or amyotrophic lateral sclerosis (Lou Gehrig’s disease). The program helps with the cost of health care, but it does not cover all medical expenses or the cost of most long-term care.

Original Medicare (which includes Part A Hospital Insurance and Part B Medical Insurance) pays for many, but not all, health-related services and medical supplies. You can purchase a supplemental insurance policy to cover the “gaps” that are not paid for by Medicare, such as copayments, coinsurance, and deductibles. These can add up to a lot of out-of-pocket expenses, especially if you are hospitalized or need skilled nursing home services.

Some Medigap policies also will pay for certain health services outside the United States and additional preventive services not covered by Medicare. If you are in Original Medicare (Parts A and B) and you have a Medigap policy, first Medicare pays its share of the Medicare-approved amounts for your covered health care costs. Then your Medigap policy pays its share of the cost.

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